Answer:
The
company wants to develop India as a base for manufacturing car components for
the following reasons
(i) A number of local manufacturers are
supplying car components to their Chennai plant and the MNC feels that they can
supply to their other plants across the world.
(ii) Cost of labour and materials is very low in India, which will result
in more profits for the MNC.
(iii) The components can be supplied cheaply to other MNC
car manufacturers in India and China.
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